UBL

By Aditya Kalra

NEW DELHI, April 21 (Reuters) - India's antitrust agency has made Anheuser-Busch InBev a target of a cartel investigation after the world's leading brewer cooperated for four years as a witness, leading to a court battle in which AB InBev has obtained a temporary injunction, according to two sources and documents.

Since 2022, the Competition Commission of India (CCI) has been investigating 42 alcohol retailers in Telangana, India's largest beer consuming state, for allegedly forming a cartel to exclude AB InBev's ABI.BR rivals, leading to a surge in market share for the Belgium-based maker of beers including Budweiser and Corona.

As part of the case, AB InBev was raided in 2024, but no other details have been previously made public in line with CCI's rules on its investigation of alleged cartels.

AB InBev's status in the case was changed from a third-party to "party under investigation" in November 2025, which was illegal as "no prior notice, hearing, or reasoned order preceded this drastic alteration," the company said in a court filing that was reviewed by Reuters.

In a brief court hearing on April 16, a judge in southern Karnataka state put the investigation against AB InBev on hold, two sources with direct knowledge of the decision told Reuters.

The court order has not yet been made public, but one of the sources said the court took the decision as it saw merit in AB InBev's concerns.

AB InBev, the world's largest brewer, did not respond to Reuters requests for comment. Nor did the CCI. The sources declined to be named as the case details were confidential.

Making a company a "party under investigation" from a third-party is a significant change in any case and is done when investigators feel they have discovered some evidence against an entity, according to lawyers familiar with the process.

"Your rights of defence are compromised. Now the company needs to defend itself," said Avaantika Kakkar, head of competition practice at Indian law firm Cyril Amarchand Mangaldas, which is not involved in the case.

Courts across India have had differing views on whether a third-party can be made an accused without notice, lawyers say. However, if the CCI succeeds in overturning the court block, AB InBev will be exposed to penalties that could be as much as three times its profit or 10% of the company's turnover for each year of wrongdoing.

COURT PAPERS REVEAL CASE DETAILS

India's beer market is worth $10 billion, according to the Brewers Association of India, which says Heineken alone accounts for roughly half the market, while AB InBev and Carlsberg CARLb.CO each account for 19%.

The case about retailers in Telangana is the toughest regulatory move against the sector since Heineken-controlled United Breweries and Carlsberg were fined more than $100 million collectively in 2021 after being found guilty of price collusion, though both brewers repeatedly denied wrongdoing. AB InBev acted as a whistleblower in that case.

AB InBev's court papers on the Telangana case reveal for the first time CCI's initial views on the allegations, though the complainant's name has been withheld by the watchdog.

The CCI found merit in allegations that scores of retailers had entered into arrangements among themselves to stock and sell AB InBev beers, and exclude products from Heineken HEIN.AS, United Breweries UBBW.NS and Carlsberg.

The regulator also said it had found retailers were eligible to receive a special incentive for promoting products of AB InBev exclusively. United Breweries and Carlsberg did not respond to Reuters requests for comment.

AB InBev privately told the CCI the case should be dismissed as the agency had failed to provide any evidence to show any communication "between the retailers to boycott non-ABI beers", the court papers showed.

AB InBev continued to cooperate with authorities between 2023 and 2025 and provided sensitive business information, including details of incentives it provided, before realising in November last year it was now itself under investigation, the filing said.

"Such unilateral action is antithetical to the fundamental requirement of fairness," AB InBev said.

(Reporting by Aditya Kalra; Editing by Kate Mayberry)

((Email: [email protected]; X: @adityakalra;))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Ujjaini Dutta

BENGALURU, April 10 (Reuters Breakingviews) - As India’s busiest beer season approaches, Carlsberg CARLb.CO is readying its taps. The Tuborg-maker is preparing a $700 million listing of its India arm in a market that offers room for growth at a time when the brewer is grappling with high debt and sluggish beer sales in the West. A premium valuation, possible in a country where wealthy drinkers are trading up, could help the brewer pay down its chunky deal-making tab.

Carlsberg has spent 20 years building its India business. The $18 billion brewer reckons its high-end Tuborg brand is the “most-consumed” in the world’s fourth-largest economy. It has also seen its share of the 639 billion rupees ($6.86 billion) beer market increase to 22% from just about 5% in 2011. But debt has been hanging over the brewer since its $4 billion acquisition of soft drinks maker Britvic in 2024. Since that deal, its net debt-to-EBITDA ratio roughly doubled to 3.25 in the year ended December 2025, well above its 2.5 target.

An India listing gives Carlsberg a shot at a richer valuation that can help bring down this debt. Carlsberg trades at about 13 times its expected earnings this year, trailing rival Anheuser-Busch InBev’s ABI.BR over 17 times. Heineken HEIN.AS-owned United Breweries UBBW.NS in India, by comparison, trades at 80 times. That valuation gap is not unique: Nestlé India NEST.NS at 73, Hindustan Unilever HLL.NS at 47 and LG Electronics India LGEL.NS at 54 trade at multiples higher than their parent companies.

Carlsberg can also use the proceeds from the listing to help fund its expansion plans in India. The growing beer market looks compelling as booze loses pull in ageing, health-conscious populations in Europe and North America. India's beer consumption is still very low - just 2 litres per person annually, according to market research firm IMARC Group. That's far below consumption levels in the U.S. and Europe, suggesting significant room for growth. Meanwhile, the market is expected to grow over 5% annually, compared to Europe’s 2% and North America’s 4%, amid a surge of demand from affluent Indians.

Still, India won’t be an easy win. The sector faces complex state regulations, high levies, and increasing competition from local beer makers and giants like United Breweries and AB InBev. United Breweries, India’s listed beer market leader, is also pushing further into the premium segment in a bid to restore its net profit margin which has halved since 2019. But a local listing will hand Carlsberg's CEO Jacob Aarup-Andersen a currency to strike deals in the country. And with a lighter debt load, he has a shot at growing beyond India too.

Follow Ujjaini Dutta on LinkedIn and X.

CONTEXT NEWS

Carlsberg CEO Jacob Aarup-Andersen on February 4 said that the company was exploring a potential listing of its India business.

Carlsberg has appointed three banks - Kotak Mahindra Capital Co. and the local units of JPMorgan Chase & Co and Citigroup - for the potential listing of its India arm, Bloomberg reported on February 23, citing people familiar with the matter. This offering could raise as much as $700 million.

A draft red herring prospectus could be filed as early as May.

(Editing by Aimee Donnellan; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))

April 2 (Reuters) - United Breweries Ltd UBBW.NS:

• UNITED BREWERIES LTD - GETS TAX ORDER TOTALING TO 225 MILLION RUPEES

Source text: ID:nBSE6mHKzR

Further company coverage: UBBW.NS

(([email protected];))

By Aditya Kalra

NEW DELHI, March 24 (Reuters) - Global brewers operating in India are warning of price increases and supply disruptions as a shortage of gas due to the Iran war drives up the cost of glass bottles and shipping delays hit imports of aluminium needed by can makers.

India is especially vulnerable to fuel availability as the world's fourth-largest importer of natural gas, relying heavily on the Middle East for shipments, sourcing about 40% of its supply from Qatar.

Iranian attacks have partially disrupted Qatar's export capacity, tightening gas availability for Indian manufacturers.

The Brewers Association of India, representing global brewers Heineken HEIN.AS, Anheuser-Busch InBev ABI.BR and Carlsberg CARLb.CO told Reuters that glass bottle prices have surged around 20%, paper carton rates have doubled as well as other packaging materials such as labels and tape.

Gas is essential to keeping furnaces and production lines running, and shortages have forced several glass bottle makers to partially or fully halt operations. Aluminium can suppliers have also warned of possible reductions just as India heads into its peak summer season, when beer sales typically rise.

"We are asking for price increases in the range of 12-15%," the association's director general Vinod Giri told Reuters. "We have advised our member companies to individually approach states."

The rising cost of production is making some operations unsustainable, he added.

Heineken's India unit United Breweries UBBW.NS, Anheuser-Busch InBev and Carlsberg did not respond to Reuters queries.

The market was worth $7.8 billion in 2024, and is expected to double by 2030, Grand View Research says. Heineken alone accounts for roughly half the market, while AB InBev and Carlsberg each account for 19%, the association said.

While the three companies dominate India's beer sector, many smaller players such as Bira and Simba also operate in the market.

GLASS, PLASTICS INDUSTRY CRISIS

Beer and liquor sales in India have grown steadily alongside rising urbanisation and a young, increasingly affluent population.

The Confederation of Indian Alcoholic Beverage Companies, which represents many domestic companies, said it has written to several states seeking price adjustments to offset rising freight, logistics and input costs.

India's alcohol sector is tightly regulated, and raising retail prices typically requires approval. Around two-thirds of India's 28 states must authorise changes.

"Brewers may find it difficult to maintain supplies in states that do not allow price increases," the association said.

Some glass bottle vendors are warning their clients of reduced supplies and have increased their prices.

Nitin Agarwal, CEO of Fine Art Glass Works in Firozabad, a glass-making hub in northern Uttar Pradesh state, said he has cut production by 40% at his glass bottle making factory due to gas shortages. His customers include many liquor companies as well as producers of juice and ketchup bottles.

"We've cut production and increased prices by 17-18%," Agarwal said.

The shortages have already affected India's $5 billion bottled ‌water market with some producers increasing prices by 11% due to rising rates of plastic bottles and caps.

And there are signs the crisis is spreading.

An executive at Lotte Chilsung Beverage, one of the leading South Korean soft drinks companies, told Reuters that it has up to three months of inventory for plastic bottles and plastic materials.

"The situation is serious," he said.

(Reporting by Aditya Kalra; additional reporting by Hyunjoo Jin; Editing by Louise Heavens)

((Email: [email protected]; X: @adityakalra;))

March 18 (Reuters) - United Breweries Ltd UBBW.NS:

• UNITED BREWERIES LTD - RECEIVES ENVIRONMENTAL CLEARANCE FOR GREENFIELD BREWERY IN UTTAR PRADESH

Source text: ID:nBSE9ZB60Z

Further company coverage: UBBW.NS

(([email protected];))

March 13 (Reuters) - United Breweries Ltd UBBW.NS:

• UNITED BREWERIES LTD - RECEIVES GST DEMAND ORDER OF 318.8 MILLION RUPEES INCLUDING PENALTY

Source text: ID:nBSE5rqvCb

Further company coverage: UBBW.NS

(([email protected];))

March 6 (Reuters) - United Breweries Ltd UBBW.NS:

• UNITED BREWERIES LTD - RECEIVES DIRECTION TO DEPOSIT ENVIRONMENTAL COMPENSATION FROM RAJASTHAN STATE POLLUTION CONTROL BOARD

• UNITED BREWERIES LTD - DIRECTED TO DEPOSIT 3.6 MILLION RUPEES AS ENVIRONMENTAL COMPENSATION FOR SAHJAHANPUR BREWERY

• UNITED BREWERIES LTD - COMPANY EXPECTS NO MATERIAL IMPACT ON OPERATIONS FROM DIRECTION RECEIVED

Source text: ID:nBSE57nVrm

Further company coverage: UBBW.NS

(([email protected];))

Adds details from deal with United Breweries Ltd paragraphs 5-6

By Gus Trompiz and Sybille de La Hamaide

PARIS, Feb 20 (Reuters) - France's Soufflet Malt, the world's largest malt producer, will invest 100 million euros ($118.2 million) in a new production facility in India as it aims to capture rising beer demand in emerging markets, it said on Friday.

The facility, to be located in the south of the state of Rajasthan, will produce 110,000 metric tons of malt annually in its first phase, which is scheduled for completion by early 2028. A second phase, which could double output, is planned if beer consumption in India continues to rise.

Soufflet Malt's push in emerging markets contrasts with restructuring in Europe, where it faces declining beer consumption. The group said it would close two factories in Germany and one in the UK to optimise costs.

"We have countries in which there are decreases (in beer consumption), but if there is one country where we see really a big growth coming, it's India," Soufflet Malt Chief Executive Jorge Solis told Reuters from India, where he was travelling with French President Emmanuel Macron on a three-day visit to the country.

India's per capita beer consumption remains low at about 2 litres annually, compared with about 70 litres in the U.S. and 130 litres in the Czech Republic, the world's top consumer, industry data shows.

United Breweries Limited UBBW.NS, a Heineken-owned company HEIN.AS that controls about half of India's beer market, will be the main beneficiary of the plant's output but not necessarily the only one, Solis said.

"This initiative directly supports UBL's commitment to the long-term growth of the beer category in India by strengthening backward integration, securing a consistent supply of high-quality malt for iconic brands like Kingfisher and Heineken," the companies said in a joint statement.

Solis highlighted whisky as another growth segment in India, noting that the country is the largest whisky market globally, with demand significantly surpassing that for beer.

Soufflet Malt, part of French grain group InVivo, already operates a malt house in Rajasthan, with an 18,000-ton capacity. It sources barley locally and supplies malt to local brewers.

Elsewhere, Soufflet Malt is exploring plans to expand in South America, which is likely to include doubling its production capacity in Brazil, Solis said.

The firm is currently building a malt plant in South Africa dedicated to supplying Heineken.

($1 = 0.8460 euros)

(Reporting by Sybille de La Hamaide and Gus Trompiz. Editing by Kirsten Donovan and Mark Potter)

(([email protected]; +336 8774 4148;))

Feb 13 (Reuters) - United Breweries Ltd UBBW.NS:

• UNITED BREWERIES - NFAC PASSES FRESH ORDER REDUCING DEMAND TO 32.1 MILLION RUPEES FROM 1.02 BILLION RUPEES

Source text: ID:nBSEbRP0Rt

Further company coverage: UBBW.NS

(([email protected];))

Feb 10 (Reuters) - United Breweries Ltd UBBW.NS:

• UNITED BREWERIES Q3 PROFIT 808.3 MILLION RUPEES

• UNITED BREWERIES Q3 REVENUE FROM OPERATIONS 39.36 BILLION RUPEES

Source text: ID:nBSE8ll7hK

Further company coverage: UBBW.NS

(([email protected];;))

Jan 19 (Reuters) - United Breweries Ltd UBBW.NS:

• UNITED BREWERIES LTD - SALE DEED EXECUTED FOR 8 ACRES IN HYDERABAD

• UNITED BREWERIES LTD - SALE CONSIDERATION OF 808 MILLION RUPEES

Source text: ID:nBSE5cGspQ

Further company coverage: UBBW.NS

(([email protected];))

** Shares of United Breweries UBBW.NS rise as much as 2.79% to 1847.9 rupees

** J.P.Morgan reiterates "overweight" rating; cites sustained premiumisation, category development, distribution enhancement and supply chain initiatives to support earnings in a challenging period

** Says, above-average monsoon rains doused sales of summer products such as beer this quarter, but volumes should recover in the second half of fiscal 2026

** Price hikes in several states, better bottle return and recycled glass use, and stable barley costs bode well for margin expansion - brokerage

** Adds, UBBW shares corrected 10% over the past two months, offering a good entry opportunity

** The average rating of 18 analysts tracking UBBW is "hold", median PT is 2,018.50 rupees - data compiled by LSEG

** UBBW shares are down 12% in 2025 so far, lagging the 0.5% drop in FMCG index .NIFTYFMCG, exchange data shows

(Reporting by Bharath Rajeswaran in Bengaluru)

(([email protected]; +91 9769003463;))

Adds new quotes

Sept 4 (Reuters) - India late on Wednesday announced tax cuts on hundreds of consumer items ranging from soaps to small cars to spur domestic demand, and simplified its complicated goods and services tax structure to two rate slabs from four, with some exceptions for luxury and "sin" goods.

The benchmark BSE Sensex .BSESN and Nifty 50 .NSEI rose 0.8% each in early sessions.

Here is how the industry has reacted so far:

ANISH SHAH, GROUP CEO & MD, MAHINDRA GROUP

"The next-generation GST reforms... mark a defining moment in India's journey towards building a simpler, fairer, and more inclusive tax system.

At Mahindra, we view these reforms as transformative. They simplify compliance, expand affordability, and energise consumption, while enabling industry to invest with greater confidence."

SAURABH AGARWAL, PARTNER & AUTOMOTIVE TAX LEADER, EY INDIA

"The rationalization of GST rates on automotive vehicles and parts is a truly welcome and significant development. By making vehicles more affordable across all segments, this move will not only boost consumer spending but also simplify complex classification disputes that have long burdened the industry."

SAMIR SHAH, EXECUTIVE DIRECTOR & CFO, HDFC ERGO GENERAL INSURANCE COMPANY

"The GST Council decision to exempt individual health insurance from GST is a welcome development. This move aligns perfectly with the broader ambition of the regulator of 'Insurance for All by 2047,' providing a tangible step forward in that direction.

While it is anticipated that there will be lowering of the premiums due to lowering of the taxes, we are yet to understand the extent of this reduction as this will also depend upon availability of the input tax credit, which will become clearer over the coming days.”

NILESH SHAH, MANAGING DIRECTOR, KOTAK MAHINDRA ASSET MANAGEMENT CO

"The GST announcement lowers inflation, increases growth, boosts consumer sentiment, doesn't disturb the path of fiscal consolidation, improves ease of doing business and partially offers adverse effects of tariffs."

SHAILESH CHANDRA, PRESIDENT SOCIETY OF INDIAN AUTOMOBILE MANUFACTURES

"This timely move is set to bring renewed cheer to consumers and inject fresh momentum into the Indian Automotive sector. Making vehicles more affordable, particularly in the entry-level segment; these announcements will significantly benefit

first-time buyers and middle-income families, enabling broader access to personal mobility."

C S VIGNESHWAR, PRESIDENT, FEDERATION OF AUTOMOBILE DEALERS ASSOCIATIONS

"The 56th GST Council meeting marks a watershed moment for India's automobile retail industry. This is a decisive step that will boost affordability, spur demand, and make India's mobility ecosystem stronger and more inclusive.

One area that may needs earliest clarification is about levy and treatment of cess balances currently lying in dealers' books, so that there is no ambiguity during transition."

SANJEEV ASTHANA, CEO, PATANJALI FOODS LIMITED.

"At Patanjali Foods, we are fully committed to passing on these benefits to our consumers. This initiative will not only enhance FMCG penetration across urban and rural India but also act as a catalyst for broader economic revival by lifting consumption and supporting allied sectors.

Our categories such as ghee, soaps, biscuits, noodles, honey, and chyawanprash will benefit from this reduction."

RADHIKA RAO, SENIOR ECONOMIST AT DBS BANK IN SINGAPORE

Lower GST rates will be positive for growth in the second half of the year and FY27, besides improving operational efficiency and expanding the size of the formal economy.

GARIMA KAPOOR, ECONOMIST, INSTITUTIONAL EQUITIES, ELARA SECURITIES, MUMBAI

"We expect GST related demand boost to add 100 to 120 bps to the GDP growth over next 4-6 quarters, thereby nullifying the negative impact of higher tariffs on exports to US. We remain constructive on the uptick in consumption demand in the economy as multiple policy levers turn favourable for the first time in a decade."

SHRIPAL SHAH, MD & CEO, KOTAK SECURITIES

"The GST rate cuts come at the right time which is just ahead of the festive season and against the backdrop of US tariff tiffs. Lower taxes on essentials, FMCG products, autos and cement will leave consumers with more money in hand.

This should directly boost demand, help traders and businesses see higher volumes, and may even favourably impact next quarter's earnings. It also carries the potential to ease inflation. The key will be how quickly companies pass on the benefits to customers."

DEVARSH VAKIL, HEAD OF PRIME RESEARCH AT HDFC SECURITIES

"The GST reforms represent a paradigm shift toward economic rationality, with rate reductions on essentials like dairy, medicines, and food directly benefiting consumers due to their inelastic nature.

Combined with RBI rate cuts, FY26 income tax rebates, and moderating inflation, these reforms create multiple stimuli for consumption and economic growth."

(Reporting by Chandini Monnappa, Bharath Rajeswaran and Manvi Pant in Bengaluru; Editing by Mrigank Dhaniwala and Nivedita Bhattacharjee)

(([email protected]; https://www.linkedin.com/in/chandini-monnappa-8a37b013b/;))

** Kingfisher beer maker United Breweries UBBW.NS climbs 1.9% to 2,075.1 rupees in early trade

** Co reported a 6% on-year rise in first-quarter profit at 1.84 billion rupees ($21.3 million), helped by lower excise duty costs and strong demand for premium beers

** Stock rated "hold" on avg, while rival United Spirits UNSP.NS rated "buy" - data compiled by LSEG

** Year-to-date, UBBW up 1.8%, UNSP down 17%

($1 = 86.3940 Indian rupees)

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

July 22 (Reuters) - United Breweries Ltd UBBW.NS:

• Q1 PROFIT 1.84 BILLION RUPEES

• Q1 REVENUE FROM OPERATIONS 53.79 BILLION RUPEES

Source text: ID:nBSEZdk7m

Further company coverage: UBBW.NS

(([email protected];;))

May 7 (Reuters) - United Breweries UBBW.NS, the largest beer seller in India, reported a 20.5% increase in quarterly profit on Wednesday, lifted by solid demand for higher-priced beers and lower excise duty costs.

The Kingfisher beer maker's standalone profit rose to 973.8 million rupees ($11.50 million) in the fourth quarter ended March 31, from 808.4 million rupees an year earlier.

United Breweries, majority-owned by Netherlands-based Heineken HEIN.AS, reported a 7.6% decline in revenue after it briefly stopped supply to India's top beer consuming state, Telangana. Still, volumes were up 5% in the quarter, with those of premium beers jumping 24%.

Total expenses dropped 8.6%, led by a 21% decline in excise duty.

KEY CONTEXT

Indians with more means are shrugging off high cost of living to spend on indulgences from Nestle's NEST.NS pricier chocolates to costlier beers sold by United Breweries, Anheuser-Busch InBev's ABI.BR Budweiser and Carlsberg CARLb.CO.

In the reported quarter, however, United Breweries was at odds with Telangana over delayed payments and a lack of government approval for price increases since 2019/20.

PEER COMPARISON

* The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JANUARY TO MARCH STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 84.6510 Indian rupees

($1 = 84.6660 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Nandan Mandayam in Bengaluru; Editing by Shailesh Kuber)

(([email protected]; +91 867-525-3569;))

April 3 (Reuters) - United Breweries Ltd UBBW.NS:

• UNITED BREWERIES LTD - LAUNCHES AMSTEL GRANDE IN UTTAR PRADESH

Source text: ID:nBSE6bbS8W

Further company coverage: UBBW.NS

(([email protected];))

Feb 14 (Reuters) - United Breweries UBBW.NS may raise beer prices further in India's Telangana, a top official said, days after the country's largest beer-consuming state permitted brands to do so for the first time in five years.

The southern Indian state's decision on Tuesday came as a much-needed reprieve for the company, which had briefly halted its supply to the state.

The Kingfisher beer maker, majority-owned by Dutch liquor giant Heineken HEIN.AS, had earlier this year said it was facing delayed payments and a lack of government approval for price increases for about five years.

The company has a 70% market share in Telangana and brings in 15% to 20% of its revenue from the state, where it is currently not profitable.

United Breweries is "not fully out of the red" in Telangana, CEO Vivek Gupta said on an earnings call, adding that the company expects another price increase in the state in the "very, very near foreseeable future".

Separately, United Breweries also said beer sales in January was weak, partly due to the supply halt in Telangana, even as it added sales had rebounded in February. It did not directly quantify the impact of the supply halt.

On Thursday, United Breweries reported a 25% fall in its quarterly profit, as inflation-wary consumers cut back on spending on its cheaper beers in a few states including West Bengal and Tamil Nadu.

(Reporting by Ashna Teresa Britto in Bengaluru and Praveen Paramasivam in Chennai; Editing by Leroy Leo)

(([email protected];))

Feb 13 (Reuters) - United Breweries Ltd UBBW.NS:

• UNITED BREWERIES Q3 PROFIT 382.6 MILLION RUPEES

• UNITED BREWERIES Q3 REVENUE FROM OPERATIONS 44.25 BILLION RUPEES

Source text: ID:nBSEYXsJ4

Further company coverage: UBBW.NS

(([email protected];;))

Feb 11 (Reuters) -

• INDIA TELANGANA STATE RAISES PRICES OF BEER FROM FEBRUARY 11- GOVERNMENT ORDER

Further company coverage: UBBW.NS

(([email protected];))

Adds background on Telangana, United Breweries decision in paragraphs 3-5, 7, 10

By Nandan Mandayam

Jan 20 (Reuters) - Heineken's HEIN.AS Indian unit United Breweries UBBW.NS will resume beer supplies to India's Telangana state, the company said on Monday, weeks after it halted supply over pricing and non-payment of dues by the state government.

"We have decided to restart our supplies... for the time being. This is an interim decision in the interest of consumers, workers and stakeholders," United Breweries said in an exchange filing.

The company's shares jumped as much as 6.3% following the news and were up 3.4% at 2,017.65 rupees at 11:40 a.m. IST. However, shares are still down about 3% since the supply suspension decision on Jan. 8.

The 'Kingfisher' beer manufacturer said the interim decision was made following "constructive" talks with the government, which assured it would address the pricing and dues in a "time bound manner."

The Telangana government did not immediately respond to a Reuters request for comment.

Telangana is India's top beer-consuming state, where United Breweries has 70% of the market share.

The decision to resume supplies marks a reprieve in an otherwise stressed regulatory environment where global alcohol companies such as Diageo DGE.L, Pernod Ricard PERP.PA, AB InBev ABI.BR and Carlsberg CARLb.CO are demanding about $466 million in unpaid dues.

They are also battling regulatory challenges including antitrust investigations.

United Breweries, in its Jan. 8 decision, cited delayed payments and a lack of government approval for higher prices since 2019/20, which hurt its finances, for halting sales to Telangana.

States in India, the world's eighth-biggest alcohol market by volume, individually regulate the pricing of alcohol products, which are major contributors to their tax revenue.

Alcohol is bought by the state government and then supplied to shops in Telangana, where officials had rationed supplies to deter hoarding and tackle shortages.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Eileen Soreng)

(([email protected]; Mobile: +91 9591011727;))

Jan 17 (Reuters) - United Breweries Ltd UBBW.NS:

• UNITED BREWERIES - LAUNCHES NEW BEERS, AVAILABLE IN DAMAN AND GOA FROM JAN 17

Source text: ID:nBSE8slfzH

Further company coverage: UBBW.NS

(([email protected];;))

By Rishika Sadam and Aditya Kalra

HYDERABAD, Jan 13 (Reuters) - India's biggest beer-consuming state is rationing supplies of Kingfisher, one of the country's most popular brands, after Heineken-controlled HEIN.AS United Breweries UBBW.NS last week suspended its sales in a dispute over prices.

States in India, the world's eighth-biggest alcohol market by volume, individually regulate pricing of alcohol products, which are major contributors to their tax revenue.

Alcohol is bought by the state government and then supplied to shops in Telangana, where officials are rationing supplies to deter hoarding and tackle shortages, three retailers said.

"Today we got a notification from our depot that there is no Kingfisher beer stock anymore," Madhusudhan Rao, a liquor store owner in Hyderabad city, told Reuters on Monday.

United Breweries, which brews the popular Kingfisher brand, last week cited delayed payments and a lack of government approval for higher prices since 2019/20, which had damaged its finances, for halting sales to Telangana.

The move is the latest sign of stress in India's $45 billion alcohol market, with companies including Diageo DGE.L, Pernod Ricard, AB InBev ABI.BR and Carlsberg CARLb.CO together demanding some $466 million in unpaid dues.

They are also battling regulatory challenges including antitrust investigations.

Telangana state said last week that United Breweries had suspended supplies as a "tactic" to press for price increases and a panel was deciding on such requests.

Officials in Telangana, where some depots are running out of beer, did not respond to a request for comment on Monday.

Another liquor store owner in Hyderabad, Purushottam, said some outlets had 10 days of Kingfisher beer stock remaining, while others only enough for two days.

Outlets and depots in Telangana will only have stock of United Breweries products for around two weeks, an industry source with direct knowledge of the matter said.

United Breweries, the country's biggest beer company, accounts for 70% of the state's beer market, where 60 million 12-bottle cases are sold each year.

The Brewers Association of India said that the beer prices companies charge in Telangana are around 300 rupees per case, whereas in Maharashtra they get around 500 rupees a case.

It said that states taxes and retailer margins on top of these lead to a consumer price which is five to six times higher in most Indian states.

(Writing by Indranil Sarkar; Editing by Alexander Smith)

(([email protected]; Mobile: +91 7022132226;))

By Aditya Kalra and Indranil Sarkar

NEW DELHI, Jan 9 (Reuters) - Global alcohol companies such as Diageo, Pernod Ricard and Carlsberg are demanding unpaid dues of about $466 million from India's Telangana state, where Heineken suspended supplies this week in an unprecedented move, three industry sources said.

India is the world's eighth-biggest alcohol market by volume, with annual revenues that Euromonitor estimated last year at $45 billion. Its states individually regulate pricing of alcohol products, which are major contributors to their revenue.

Heineken's United Breweries UBBW.NS has said it will halt supplies to southern Telangana, India's biggest beer consumer, because of delayed payments and lack of government approval for higher prices since fiscal 2019/20, which hurt its finances.

Wednesday's unusual move by India's biggest beer company sparked a fall of 7% in its shares at a time when the industry faces intense scrutiny nationwide.

The antitrust watchdog is separately investigating accusations of collusion by Anheuser-Busch InBev and France's Pernod to boost market share, having raided their offices in December. Both are cooperating with Indian authorities.

Many places like Telangana require liquor companies to supply only to state-run depots, which then sell to retailers, forcing the companies to rely on state governments for payment.

Alcohol industry sources who spoke on condition of anonymity said Telangana owed total unpaid dues of about 40 billion rupees ($466 million) to whisky and beer companies.

Late on Wednesday, Telangana minister Jupally Krishna Rao said United Breweries, which has 70% of the market in the state, had suspended supplies as a "tactic" to press for price increases, which tend to blunt consumer demand.

Rao said the state owed United Breweries 6.6 billion rupees ($77 million), but did not give exact reasons for the delay.

He did not reveal outstanding dues to its peers, but sources said Carlsberg is owed nearly 400 million rupees ($5 million) while outstandings for AB InBev ABI.BR amount to 1.5 billion ($17 million).

Dues owed to whisky and Scotch makers are much more. Pernod Ricard PERP.PA has been demanding 15 billion rupees ($175 million), while Diageo's DGE.L unpaid dues are estimated at 10 billion rupees ($116.40 million), two of the sources said.

None of the companies responded to requests for comment on Friday, and neither did Telangana state officials.

Lack of timely payments was "creating tremendous difficulties for companies", the Brewers' Association of India and International Spirits and Wines Association of India told the Telangana government in a letter.

The areas worst hit were operations and efforts to sustain and plan investments, the groups added in their Oct. 3 letter, seen by Reuters, which estimated that total outstanding payments were $606 million by then.

Heineken-owned United Breweries reported sales of 183 billion rupees ($2.1 billion) in fiscal 2023/24. Elara Capital estimates that Telangana accounts for about 15% to 20% of the company's annual sales by volume.

(Reporting by Aditya Kalra and Indranil Sarkar; Additional reporting by Rishika Sadam; Editing by Clarence Fernandez)

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Updates to add comments from state minister in paragraphs 6-8

By Rishika Sadam, Nandan Mandayam and Indranil Sarkar

HYDERABAD/BENGALURU, Jan 8 (Reuters) - Heineken-owned United Breweries UBBW.NS on Wednesday stopped supplying beer to Telangana in southern India, following the state's refusal to allow price rises, which the company said had resulted in huge losses.

United Breweries, maker of India's Kingfisher brand, is the country's biggest beer company and the state of Telangana is India's biggest beer consumer.

"Despite our continuous efforts over the past two years, there has been no increase in the base prices offered for our products. This has resulted in escalating losses, making our operations in the state unviable," United Breweries said in a statement announcing the suspension of supplies.

United Breweries did not give financial details on the size of its losses.

Last May, United Breweries CEO Vivek Gupta said in an earnings call that it was owed 7-8 billion rupees in lost revenue from the south Indian state.

In response to the supply halt, Telangana's minister of Excise and Prohibition, Jupally Krishna Rao, said at a press conference on Wednesday that United Breweries had asked for a 33.1% price hike on its beer, which would "become a burden on consumers."

The minister said the state has formed an independent committee to review the price hike request. Based on its report, the government will decide on the size of the increase.

"(The) Price hike will be done accordingly, but not as much as the company is demanding," Rao said.

In India, regulations for the alcohol sector require states to sign off on liquor pricing changes every year.

United Breweries counts Telangana as one of its key operating states, contributing roughly 15-20% of its beer sales by volume. The state forms 10%-12% of the company's earnings, said Karan Taurani, an analyst at Elara Securities.

News of the supply halt sent United Breweries shares down as much as 7%, before they settled 3.6% lower at the close.

Meanwhile, some liquor dealers have started to stock up on the beer brands to prepare for any shortage of supply, which the state government estimated to be at 1.4 million cases, as of Wednesday.

Telangana has 18 state-run liquor depots that supply to dealers and shops, which in turn, sell to consumers.

"In one of the liquor depots in Hyderabad city, 12,000 cases, or 144,000 bottles, of beer were sold out in 30 minutes," said D. Venkateshwara Rao, President of Telangana Wine Dealers Association, which represents the state's alcohol sellers.

Last year, the Brewers Association of India (BAI), a federation of some of the country's largest beer makers, called for price hikes for alcoholic beverages to compensate for inflation in the state, which accounts for the sale of roughly 500 million litres of beer a year.

The state rejected the request, a government source familiar with the matter told Reuters on Wednesday on condition of anonymity.

"It's a matter of who blinks first, especially if the entire industry chooses to take actions like stopping supplies," said former United Breweries Chief Marketing Officer Samar Singh Sheikhawat.

"In such a scenario, the state loses much more than any individual manufacturer," he added.

($1 = 85.8690 Indian rupees)

(Reporting by Rishika Sadam, Nandan Mandayam and Indranil Sarkar; additional reporting by Manvi Pant; Editing by Savio D'Souza, Mrigank Dhaniwala, Barbara Lewis, Dhanya Skariachan, Jane Merriman)

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By Aditya Kalra

NEW DELHI, Dec 19 (Reuters) - India's antitrust body has raided offices of alcohol giants Pernod Ricard PERP.PA and Anheuser-Busch InBev ABI.BR as it investigates allegations of price collusion with retailers in a southern state, sources familiar with the matter said.

Wednesday's surprise raids by the Competition Commission of India (CCI) targeted the offices in the city of Hyderabad, and some retailers in nearby Telangana state, the five sources said, for one of the biggest such recent crackdowns in the industry.

The sources spoke on condition of anonymity as they were not authorised to speak to the media.

Pernod, maker of brands like Chivas Regal, did not immediately respond to a request for comment.

In a statement, InBev, which makes Budweiser, said, "While we cannot comment on the specifics, we take antitrust compliance very seriously. We are working together in collaboration with the authorities".

The CCI did not immediately respond to a request for comment on the matter.

(Reporting by Aditya Kalra; Additional reporting by Aditi Shah; Editing by Clarence Fernandez)

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Dec 18 (Reuters) - United Breweries Ltd UBBW.NS:

• BOARD APPROVES PRODUCTIVITY PROGRAM

• INITIATIVES EXPECTED TO YIELD 1.5%-3% ANNUALIZED SAVINGS ON FIXED COSTS

• ONE-TIME COST EXPECTED FOR SUPPLY CHAIN AND FINANCE RE-DESIGN

• FINANCIAL IMPACT TO APPEAR IN Q3 FY 2025 RESULTS AS EXCEPTIONAL ITEM

Source text: ID:nBSEc0kbm5

Further company coverage: UBBW.NS

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By Jacob Gronholt-Pedersen

COPENHAGEN, Aug 14 (Reuters) - Carlsberg CARLb.CO doesn't expect any dramatic changes to rules for liquor ads in India, the brewer's CEO said on Wednesday, after reports the country is set to announce sweeping rules that will bar even so-called surrogate ads.

India bans direct advertising of liquor, but companies often use surrogate ads that promote their brands more generally.

India's top civil servant for consumer affairs told Reuters this month that new rules were expected to be issued within a month that could bring fines for companies and bans for celebrities involved in misleading ads.

"It is not our impression that anything is given about a potential advertising ban," Carlsberg CEO Jacob Aarup-Andersen told Reuters in an interview.

Carlsberg promotes its Tuborg drinking water in India, with an ad showing film stars at a rooftop dance party and the slogan "Tilt Your World", which echoes its Tuborg beer ads elsewhere, emblazoned with the message: "Drink Responsibly".

Aarup-Andersen said anti-alcohol lobby groups in India had recently taken aim at surrogate ads, but that the industry had also been heard in the ongoing consultation process.

"Now we have to see where it ends. We do not expect dramatic changes to regulation, and if there are changes, we will handle it," he said.

(Reporting by Jacob Gronholt-Pedersen; Editing by Mark Potter)

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By Aditya Kalra

NEW DELHI, Aug 4 (Reuters) - India, which bans direct advertising of liquor, is set to announce sweeping rules that will bar even surrogate ads and sponsoring of events, which could force firms such as Carlsberg, Pernod Ricard and Diageo to redraw marketing campaigns.

Such "surrogate ads" often get round the ban by ostensibly showing less desirable items instead, such as water, music CDs or glassware garbed in logos and hues linked to their key product, and often promoted by popular Bollywood film stars.

Now they could bring fines for companies and bans for celebrities endorsing tobacco and liquor ads deemed misleading, according to the top civil servant for consumer affairs and draft rules being reported for the first time by Reuters.

"You can't take a circuitous way to promote products," the official, Nidhi Khare, told Reuters, adding that final rules were expected to be issued within a month.

"If we find ads to be surrogate and misleading, then even those who are endorsing (products), including celebrities, will be held responsible."

For example, brewer Carlsberg promotes its Tuborg drinking water in India, with an ad showing film stars at a rooftop dance party and the slogan "Tilt Your World", which echoes its beer ads elsewhere, emblazoned with the message: "Drink Responsibly".

Competitor Diageo's YouTube ad for its Black & White ginger ale, which has drawn 60 million views, features the signature black-and-white terriers from its scotch of the same name.

The changes threaten a seachange for liquor makers in India, the world's eighth-biggest alcohol market by volume, with annual revenues Euromonitor estimates at $45 billion.

Growing affluence among its 1.4 billion people makes India a lucrative market for the likes of Kingfisher beer maker, United Breweries UBBW.NS, part of the Heineken HEIN.AS Group, which has more than a quarter of market share by volume.

Popular for their whiskies, Diageo DGE.L and Pernod PERP.PA, taken together, have a market share of about a fifth, while for Pernod, India contributes about a tenth of global revenues.

The new rules call for "prohibition against engaging in surrogate advertisement", which extends to sponsorships and ads for products viewed as "brand extensions" that share the characteristics of an alcohol brand, the draft said.

Penalties under the new rules rely on consumer law, opening manufacturers and endorsers to fines of up to 5 million rupees ($60,000), while promoters risk endorsement bans running from one to three years.

Carlsberg CARLb.CO declined to comment, while other companies did not respond to Reuters' queries, including those on sales of non-alcohol products.

Members of the International Spirits and Wines Association of India, which represents Diageo and Pernod, "are committed to a compliant way of building brand extension businesses," said its outgoing chief executive, Nita Kapoor.

The group was in talks with the government and supported advertising of "genuine" brand extensions, she added.

HEALTH IMPACT

The World Health Organization says bans or comprehensive curbs on alcohol advertising "are cost-effective measures" in the interest of public health.

Its data shows India's consumption of alcohol per person will rise to nearly 7 litres in 2030, from about 5 litres in 2019, a period over which fellow Asian giant China's consumption will drop to 5.5 litres.

And alcohol-related deaths in India stood at 38.5 for every 100,000 of its population, versus 16.1 for China.

Khare said India's draft followed a review of global best practices, in countries such as Norway, which bans ads for alcohol and other goods relying on features of a liquor brand, in curbs that researchers say have cut alcohol sales over time.

The new draft rules prohibit marketing of items such as soda or music CDs employing a "similar label, design, pattern, logo" to that of alcohol products, explicitly targeting efforts to get around current bans.

Ads for items such as glasses and soda cans allow "brand names to appear in all their ads, creating its recall value for the consumers," however, the draft states.

The new rules follow warnings to some liquor companies, such as Pernod, and some domestic tobacco firms to halt misleading ads, a senior government source said, speaking on condition of anonymity.

India is not against brand extension ads, the official added, but wants them to properly depict the product being showcased, rather than giving consumers the impression that the ad is for a liquor brand.

One India video promoted by Pernod, ostensibly for glassware products linked to its whisky brand, Blenders Pride, shows Bollywood star Alia Bhatt walking a ramp under flashing disco lights, and saying, "My life, my pride."

While it has a logo similar to that of the whisky brand, the video, which also appears on the website of the Blenders Pride Glassware Fashion Tour, shows no glassware products.

(Reporting by Aditya Kalra; Editing by Clarence Fernandez)

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BENGALURU, July 26 (Reuters) - India's markets regulator on Friday barred business tycoon Vijay Mallya from trading in the country's securities market and from associating with any listed company for three years.

The Indian government has been trying to extradite Mallya, 68, who lives in Britain, to face charges of fraud resulting from the collapse of his defunct company Kingfisher Airlines.

Mallya, who also co-owned the Formula One motor racing team Force India until 2019, has denied all wrongdoing.

The Securities and Exchange Board of India said on Friday that the tycoon's "existing holding of securities including the holding of units of mutual funds... shall remain frozen".

Mallya owns an 8.1% stake in Kingfisher beer-maker United Breweries UBBW.NS, per exchange data, and is the company's chairman. He also owns a 0.01% stake in Smirnoff vodka-maker United Spirits UNSP.NS.

(Reporting by Varun Hebbalalu in Bengaluru; Editing by Mrigank Dhaniwala)

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